national arbitration forum

 

DECISION

 

SECTOR 9, INCORPORATED v. Hong Yunju

Claim Number:  FA0504000467853

 

PARTIES

 

Complainant is SECTOR 9, INCORPORATED (“Complainant”), represented by

            Stephen L Anderson, of Anderson & Associates, 27349 Jefferson Avenue, Suite 211,    

            Temecula, CA 92590.  Respondent is Hong Yunju (“Respondent”), 11-234 Saneop 

            Yutong Center, 948 Maeweoldong seoku kwangju.

 

REGISTRAR AND DISPUTED DOMAIN NAME

 

The domain name at issue is <sectornine.com>, registered with Hangang Systems, Inc. d/b/a Doregi.com.

 

PANEL

 

The undersigned certifies that he has acted independently and impartially and to the best of his knowledge has no known conflict in serving as Panelist in this proceeding.

 

Louis E. Condon as Panelist.

 

PROCEDURAL HISTORY

 

Complainant submitted a Complaint to the National Arbitration Forum electronically on April 26, 2005; the National Arbitration Forum received a hard copy of the Complaint on May 2, 2005.  The Complaint was submitted in both Korean and English.

 

On May 9, 2005, Hangang Systems, Inc. d/b/a Doregi.com confirmed by e-mail to the National Arbitration Forum that the domain name <sectornine.com> is registered with Hangang Systems, Inc. d/b/a Doregi.com and that Respondent is the current registrant of the name.  Hangang Systems, Inc. d/b/a Doregi.com has verified that Respondent is bound by the Hangang Systems, Inc. d/b/a Doregi.com registration agreement and has thereby agreed to resolve domain-name disputes brought by third parties in accordance with ICANN's Uniform Domain Name Dispute Resolution Policy (the "Policy").

 

On May 23, 2005, a Korean language Notification of Complaint and Commencement of Administrative Proceeding (the "Commencement Notification"), setting a deadline of June 13, 2005 by which Respondent could file a Response to the Complaint, was transmitted to Respondent via e-mail, post and fax, to all entities and persons listed on Respondent's registration as technical, administrative and billing contacts, and to postmaster@sectornine.com by e-mail.

 

Having received no Response from Respondent, using the same contact details and methods as were used for the Commencement Notification, the National Arbitration Forum transmitted to the parties a Notification of Respondent Default.

 

On June 16, 2005, pursuant to Complainant's request to have the dispute decided by a single-member Panel, the National Arbitration Forum appointed Louis E. Condon as Panelist.

 

Having reviewed the communications records, the Administrative Panel (the "Panel") finds that the National Arbitration Forum has discharged its responsibility under Paragraph 2(a) of the Rules for Uniform Domain Name Dispute Resolution Policy (the "Rules") "to employ reasonably available means calculated to achieve actual notice to Respondent."  Therefore, the Panel may issue its decision based on the documents submitted and in accordance with the ICANN Policy, ICANN Rules, the National Arbitration Forum's Supplemental Rules and any rules and principles of law that the Panel deems applicable, without the benefit of any Response from Respondent.

 

Pursuant to Rule 11(a) the Panel determines that the language requirement has been satisfied through the Korean language Complaint and Commencement Notification and, absent a Response, determines that the remainder of the proceedings may be conducted in English.

 

RELIEF SOUGHT

 

Complainant requests that the domain name be transferred from Respondent to Complainant.

 

PARTIES' CONTENTIONS

 

A.  Complainant makes the following assertions:

 

1.      Respondent’s <sectornine.com> domain name is confusingly similar to Complainant’s SECTOR 9 mark.

 

2.      Respondent does not have any rights or legitimate interests in the <sectornine.com> domain name.

 

3.      Respondent registered and used the <sectornine.com> domain name in bad faith.

 

B.  Respondent failed to submit a Response in this proceeding.

 

FINDINGS

 

Complainant, Sector 9, Incorporated, manufactures, distributes and sells skateboards, longboards, wheels, clothing, stickers and other skateboard related goods.  Complainant has used the SECTOR 9 mark in connection with the sale of its skateboards and skateboard-related products for fifteen years.

 

Complainant has registered its SECTOR 9 mark with the United States Patent and Trademark Office (“USPTO”) (Reg. No. 2,139,267 issued February 24, 1998).

 

Respondent registered the <sectornine.com> domain name on June 1, 2001.  Respondent’s domain name resolves to a website that features sexually explicit advertisements and numerous links to other adult-oriented websites.

 

DISCUSSION

 

Paragraph 15(a) of the Rules instructs this Panel to "decide a complaint on the basis of the statements and documents submitted in accordance with the Policy, these Rules and any rules and principles of law that it deems applicable."

 

In view of Respondent's failure to submit a Response, the Panel shall decide this administrative proceeding on the basis of Complainant's undisputed representations pursuant to paragraphs 5(e), 14(a) and 15(a) of the Rules and draw such inferences it considers appropriate pursuant to paragraph 14(b) of the Rules.

 

Paragraph 4(a) of the Policy requires that Complainant must prove each of the following three elements to obtain an order that a domain name should be cancelled or transferred:

 

(1)    the domain name registered by Respondent is identical or confusingly similar to a trademark or service mark in which Complainant has rights; and

(2)    Respondent has no rights or legitimate interests in respect of the domain name; and

(3)    the domain name has been registered and is being used in bad faith.

 

Identical and/or Confusingly Similar

 

Complainant has established rights in the SECTOR 9 mark through registration of the mark with the USPTO.  See Men’s Wearhouse, Inc. v. Wick, FA 117861 (Nat. Arb. Forum Sept. 16, 2002) (“Under U.S. trademark law, registered marks hold a presumption that they are inherently distinctive and have acquired secondary meaning.”); see also Koninklijke KPN N.V. v. Telepathy Inc., D2001-0217 (WIPO May 7, 2001) (finding that the Policy does not require that the mark be registered in the country in which the respondent operates and that it is sufficient that the complainant can demonstrate a mark in some jurisdiction).

 

Respondent’s <sectornine.com> domain name is phonetically identical to Complainant’s SECTOR 9 mark, and thus confusingly similar to the mark.  Respondent’s domain name spells out the numeral “9” in Complainant’s SECTOR 9 mark.  Such minor change is insufficient to negate a finding of confusing similarity between the domain name and Complainant’s mark pursuant to Policy ¶ 4(a)(i).  See Hewlett-Packard Co. v. Cupcake City, FA 93562 (Nat. Arb. Forum Apr. 7, 2000) (finding that a domain name which is phonetically identical to the complainant’s mark satisfies ¶ 4(a)(i) of the Policy); see also YAHOO! Inc. v. Murray, D2000-1013 (WIPO Nov. 17, 2000) (finding that the domain name <yawho.com> is confusingly similar to the complainant’s YAHOO mark).

 

Furthermore, Respondent’s addition of the generic top-level domain “.com” and omission of the space between the terms of Complainant’s mark does nothing to distinguish the domain from the mark pursuant to Policy ¶ 4(a)(i).  See Isleworth Land Co. v. Lost in Space, SA, FA 117330 (Nat. Arb. Forum Sept. 27, 2002) (finding it is a “well established principle that generic top-level domains are irrelevant when conducting a Policy ¶ 4(a)(i) analysis”); see also Hannover Ruckversicherungs-AG v. Ryu, FA 102724 (Nat. Arb. Forum Jan. 7, 2001) (finding <hannoverre.com> to be identical to HANNOVER RE, “as spaces are impermissible in domain names and a generic top-level domain such as ‘.com’ or ‘.net’ is required in domain names”).

 

The Panel finds that Policy ¶ 4(a)(i) has been satisfied.

 

Rights or Legitimate Interests

 

Respondent failed to respond to the Complaint.  Therefore, the Panel may accept all reasonable assertions set forth by Complainant as true and accurate.  See Talk City, Inc. v. Robertson, D2000-0009 (WIPO Feb. 29, 2000) (“In the absence of a response, it is appropriate to accept as true all allegations of the Complaint.”); see also Do the Hustle, LLC v. Tropic Web, D2000-0624 (WIPO Aug. 21, 2000) (“Failure of a respondent to come forward to [contest complainant’s allegations] is tantamount to admitting the truth of complainant’s assertion in this regard.”).

 

Complainant asserts that Respondent lacks rights and legitimate interests in the <sectornine.com> domain name and Respondent, in not replying to the Complaint, has failed to rebut Complainant’s assertions.  Therefore, the Panel finds that Respondent’s failure to respond may be interpreted as evidence that Respondent lacks rights and legitimate interests in the disputed domain name pursuant to Policy ¶ 4(a)(ii).  See Parfums Christian Dior v. QTR Corp., D2000-0023 (WIPO Mar. 9, 2000) (finding that by not submitting a response, the respondent has failed to invoke any circumstance which could demonstrate any rights or legitimate interests in the domain name); see also Geocities v. Geociites.com, D2000-0326 (WIPO June 19, 2000) (finding that the respondent has no rights or legitimate interests in the domain name because the respondent never submitted a response or provided the Panel with evidence to suggest otherwise).

 

Respondent is using the confusingly similar domain name to operate a website that features sexually explicit advertisements and numerous links to various adult-oriented websites, from which Respondent presumably earns referral fees.  Such diversionary use of the domain name is not a use in connection with a bona fide offering of goods or services pursuant to Policy ¶ 4(c)(i) or a legitimate noncommercial or fair use pursuant to Policy ¶ 4(c)(iii).  See WeddingChannel.com Inc. v. Vasiliev, FA 156716 (Nat. Arb. Forum June 12, 2003) (finding that the respondent’s use of the disputed domain name to redirect Internet users to websites unrelated to the complainant’s mark, websites where the respondent presumably receives a referral fee for each misdirected Internet user, was not a bona fide offering of goods or services as contemplated by the Policy); see also Disney Enters., Inc. v. Dot Stop, FA 145227 (Nat. Arb. Forum Mar. 17, 2003) (finding that the respondent’s diversionary use of the complainant’s mark to attract Internet users to its own website, which contained a series of hyperlinks to unrelated websites, was neither a bona fide offering of goods or services nor a legitimate noncommercial or fair use of the disputed domain names).

 

Furthermore, the fact that Respondent’s domain name resolves to a website that features sexually explicit advertisements and links to other adult-oriented websites is evidence that Respondent lacks rights and legitimate interests in the <sectornine.com> domain name pursuant to Policy ¶ 4(a)(ii).  See ABB Asea Brown Boveri Ltd. v. Quicknet, D2003-0215 (WIPO May 26, 2003) (stating that the fact that the “use of the disputed domain name in connection with pornographic images and links tarnishes and dilutes [the complainant’s mark]” was evidence that the respondent had no rights or legitimate interests in the disputed domain name); see also MatchNet plc. v. MAC Trading, D2000-0205 (WIPO May 11, 2000) (finding that it is not a bona fide offering of goods or services to use a domain name for commercial gain by attracting Internet users to third party sites offering sexually explicit and pornographic material where such use is calculated to mislead consumers and to tarnish the complainant’s mark).

 

Moreover, nothing in the record indicates that Respondent is either commonly known by the disputed domain name or authorized to register domain names that are phonetically identical to Complainant’s SECTOR 9 mark.  Therefore, the Panel finds that Respondent has not established rights or legitimate interests in the <sectornine.com> domain name pursuant to Policy ¶ 4(c)(ii).  See Tercent Inc. v. Lee Yi, FA 139720 (Nat. Arb. Forum Feb. 10, 2003) (stating “nothing in the respondent’s WHOIS information implies that the respondent is ‘commonly known by’ the disputed domain name” as one factor in determining that Policy ¶ 4(c)(ii) does not apply); see also Compagnie de Saint Gobain v. Com-Union Corp., D2000-0020 (WIPO Mar. 14, 2000) (finding no rights or legitimate interests where the respondent was not commonly known by the mark and never applied for a license or permission from the complainant to use the trademarked name).

 

The Panel finds that Policy ¶ 4(a)(ii) has been satisfied.

 

Registration and Use in Bad Faith

 

The Panel infers that Respondent receives click-through fees for diverting Internet users to various adult-oriented websites in addition to the advertising fees Respondent receives through the prominent placement of sexually explicit advertisements on its website.  Because Respondent’s domain name is confusingly similar to Complainant’s mark, Internet users accessing Respondent’s domain name may become confused as to Complainant’s affiliation with the resulting website.  Thus, Respondent’s commercial use of the <sectornine.com> domain name constitutes bad faith registration and use pursuant to Policy ¶ 4(b)(iv).  See G.D. Searle & Co. v. Celebrex Drugstore, FA 123933 (Nat. Arb. Forum Nov. 21, 2002) (finding that the respondent registered and used the domain name in bad faith pursuant to Policy ¶ 4(b)(iv) because the respondent was using the confusingly similar domain name to attract Internet users to its commercial website); see also Qwest Commc’ns Int’l Inc. v. Ling Shun Shing, FA 187431 (Nat. Arb. Forum Oct. 6, 2003) (“Respondent's attempt to commercially benefit from the misleading domain name is evidence of bad faith pursuant to Policy ¶ 4(b)(iv).”).

 

Furthermore, the fact that Respondent’s domain name resolves to a website that features sexually explicit advertisements and links to other adult-oriented websites is evidence that Respondent registered and used the <sectornine.com> domain name in bad faith pursuant to Policy ¶ 4(a)(iii).  See Wells Fargo & Co. v. Party Night Inc., FA 144647 (Nat. Arb. Forum Mar. 18, 2003) (finding that the respondent’s tarnishing use of the disputed domain names to redirect Internet users to adult-oriented websites was evidence that the domain names were being used in bad faith); see also Geocities v. Geociites.com, D2000-0326 (WIPO June 19, 2000) (finding bad faith where the respondent linked the domain name in question to websites displaying banner advertisements and pornographic material).

 

The Panel finds that Policy ¶ 4(a)(iii) has been satisfied.

 

DECISION

Complainant having established all three elements required under the ICANN Policy, the Panel concludes that relief shoul be GRANTED.

 

Accordingly, it is Ordered that the <sectornine.com> domain name be TRANSFERRED from Respondent to Complainant.

 

 

Louis E. Condon, Panelist

Dated: June 28, 2005

 

 


 

 

 

 

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